Bill Text: MI SB0579 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Liquor; other; mark-up on spirits; revise based on distiller's production amount. Amends sec. 233 of 1998 PA 58 (MCL 436.1233).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-12-12 - Referred To Second Reading [SB0579 Detail]
Download: Michigan-2017-SB0579-Introduced.html
SENATE BILL No. 579
September 19, 2017, Introduced by Senators PROOS, ZORN, HANSEN and SCHMIDT and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 233 (MCL 436.1233).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 233. (1) The commission shall establish uniform prices
for
the sale of alcoholic liquor in state liquor stores and by
specially
designated distributors. The Through
December 31, 2017,
the
prices shall must return
a gross profit to the commission of
not less than 51% and not greater than 65%. Beginning January 1,
2018, for each bottle of spirits produced by a distiller below the
distiller's threshold production amount in a calendar year, the
price for each of those bottles must return a gross profit to the
commission of not greater than 20%. Beginning January 1, 2018, for
each bottle of spirits produced by a distiller in excess of the
distiller's threshold production amount in a calendar year, the
price for each of those bottles must return a gross profit to the
commission of not less than 51% and not greater than 65%. If
alcoholic liquor purchased by the commission has not met sales
standards established by the commission for a period of 6 months,
the commission may sell the alcoholic liquor at a price to be
approved by the state administrative board.
(2) Notwithstanding subsection (1), the commission may
establish by rule prices for the sale of alcoholic liquor to
hospitals, charitable institutions, and military establishments
located in this state.
(3)
There shall be allowed a discount of 17% deducted from the
sale
price established by the commission on the sale of Specially
designated distributors and on-premises licensees are entitled to a
17% discount from the uniform price described under subsection (1)
on
alcoholic liquor made by the purchased from this state. liquor
stores
to specially designated distributors and establishments
licensed
to sell for consumption on the premises.
(4) As used in this section, "threshold production amount"
means the first 60,000 gallons of spirits manufactured by a
distiller in a calendar year.
